Financial Crisis, Bank Behaviour and Credit Crunch [electronic resource] /
Rossi, Stefania P.S.editor.
Malavasi, Roberto.editor.
This book presents original contributions assessing the effects the 2008 financial crisis has had on bank behaviour, regulation and credit access. After describing some of the economic aspects behind the outbreak and later developments in the recent financial turmoil, it examines the strategic responses of banks, firms and institutions, at both the macro and micro level. In this regard, the book discusses the extent to which policies implemented by governments and monetary authorities encouraged opportunistic behaviour and produced distorted incentives and market failures. Subsequently, it presents various viewpoints on how changes in bank regulations influenced bank lending, bank risk and bank funding sources. Lastly, the book evaluates the impact of the financial crisis on the cost of funding and the shrinking credit supply, examining specific cases at the regional level in Italy.
Description based upon print version of record.
Preface; Acknowledgements; Contents; Part I: Genesis and Evolution of the Global Financial Crisis; The Crisis of International Finance, the Eurozone and Economic Growth; 1 Introduction; 2 The Crisis Is Not Over; 2.1 The New Activism of Governments and Central Banks; 2.2 The ECB, ``Quantitative Easing ́́and the Revival of the ``Liquidity Trap;́́ 3 The Origins and Nature of the International Monetary and Financial Crisis; 3.1 Global Finance and the Origins of the Current Systemic Crisis; 3.2 The Growing Weight of Finance; 3.3 Global Finance and the Slowdown in the Western Community
3.4 Advantages and Shortcomings of Global Finance3.5 The New ``Asset-Based ́́Economic, Financial and Social Order; 3.6 Asset-Price Inflation and Deflation; 4 Austerity Is Not the Solution; 4.1 The Need to Return to Sustained Growth; 5 The Demise of Dominant Doctrines; 5.1 The Crisis in Method and Theory; 5.2 Germany, Europe and the Model of the ``Social Market Economy;́́ 6 The World Needs the Euro and a New Global International Monetary Order; 7 Conclusions; References; The European Twin Sovereign Debt and Banking Crises; 1 The Origin and Development of the European Great Crisis
2 The Misalignment of Internal Real Exchange Rates, TARGET2 Positions and EMU Countries ́Balances of Payments3 The Accumulation of TARGET2 Imbalances; 4 The ECBś Loss of Control Over Interest Rates in the Crisis-Hit Countries; 5 Final Remarks: The Role of Germany in Promoting European Recovery; References; Part II: Bank Opportunistic Behaviour and Structural Reforms; Moral-Hazard Conduct in the European Banks During the First Wave of the Global Financial Crisis; 1 Introduction; 2 Size-Induced Strategic Choices; 2.1 The Empirical Framework; 2.2 Variables; 3 Data and Descriptive Statistics
4 Results4.1 An Interpretation of the Results in Terms of TBTF; 5 Conclusions; References; Agency Problems in Banking: Types of and Incentives for Risk Shifting; 1 Introduction; 2 Method of Analysis; 2.1 Interpretations; 2.1.1 Types of Risk Shifting; 2.1.2 Variables That Incentivise/Disincentivise Risk Shifting; 3 Results; 4 Conclusions; Appendix. Definitions of Variables; References; Structural Reform, Too-Big-To Fail and Banks as Public Utilities in Europe; 1 Introduction; 2 Recent Structure and Performance of European Banks; 3 Structural Reform of Banking Systems; 4 Problems with Banking
5 Why Banks Are Like Public Utilities6 Conclusions; References; Part III: Bank Regulation, Credit Access and Bank Performance; Did Basel II Affect Credit Growth to Corporate Borrowers During the Crisis?; 1 Introduction; 2 Sample, Data, Variables and Methodology; 2.1 The Sample; 2.2 The Capital Regulation Database; 2.3 Dependent Variable; 2.4 Control Variables; 2.5 Methodology; 3 The Impact of Basel II on Corporate Lending Growth; 4 Conclusions; References; Bank Profitability and Capital Adequacy in the Post-crisis Context; 1 Introduction; 2 Literature Review; 3 Dataset and Methodology
3.1 Dataset
Includes bibliographical references.
This book presents original contributions assessing the effects the 2008 financial crisis has had on bank behaviour, regulation and credit access. After describing some of the economic aspects behind the outbreak and later developments in the recent financial turmoil, it examines the strategic responses of banks, firms and institutions, at both the macro and micro level. In this regard, the book discusses the extent to which policies implemented by governments and monetary authorities encouraged opportunistic behaviour and produced distorted incentives and market failures. Subsequently, it presents various viewpoints on how changes in bank regulations influenced bank lending, bank risk and bank funding sources. Lastly, the book evaluates the impact of the financial crisis on the cost of funding and the shrinking credit supply, examining specific cases at the regional level in Italy.
Finance.
Macroeconomics.
Industrial organization.
Finance, general.
Macroeconomics/Monetary Economics//Financial Economics.
Industrial Organization.